Vermont phÅ“nix. [volume] (Brattleboro, Vt.) 1834-1955, 1887-09-09

the management Of joint and local traffic
TO the Central Vermont. Numerous dis
putes grew out Of the rates for this local
freight traffic Finally in 1881, it was ar
ranged to have the Central Vermont man
age it as heretofore, but to treat the other
roads TO the south as one party and they 10
settle their grievances amongst themselves.
East bound freight, Gov Smith said is
much heavier than west bound. Upon com
plairas from Vermont that rates from the
west to Boston were less than those from
the west TO Vermont, the Central Vermont
made the Vermont rate the same az for
Boston 1t was great advantage to Yer
mont by way of cheapening flour and other
western products
Gov. Smith then went ON to describe how
the concern known as the National Car
company came into existence. After the
Central Vermont company's through bust
ness had been established and began to in
crease the need Of more cars was felt.
Outside capital being fearful Of the scheme
Of forming a car company, the officials Of
the roads Of the Central Vermont system,
in their private capacity, organized such a
company. The charter OF the National Car
company was obtained in 1871 Finally
outside capital was put into the scheme az
the public grew confident Of its successful
operation. These cars run almost every
where. This organization is not connected
with the National Despatch line The
Grand Trunk company owns the share of
the cars which the officials Of the road own
ed at first, this company Directing to any
other arrangement so far as il was con
cerned. Tho car company receives three
quarters of a cent a mile per car for each
mile that its cars travel, whether loaded or
empty.
The facts in regard to the capital and
profits Of the car company, AZ stated by
Gov Smith on his direct examination and
on his cross examination by Senator Ed
munds, are that the original capital stock
of the company was S10O, 900, only one half
of which, or $4,000, was paid in. Divi-
dends were paid at the rate Of 10 per cent
on the entire capital stock Of 800, 600
An increase of the capital TO 5000, 600 was
soon made, but only three -fourths of this,
or $4,000 was paid in making a total in
vestment on the part Of the stockholders of
only 1928, 900. Gov Smith was not GER
tain of the exact amount Of the present
capital Of the car company, but he thought
it was $4,000, OOO-perhaps $1,000, 600.
just how it had grown to this amount he
could not tell
Gov. Smith urged the physical dsadvan-
tages under which the Central Vermont
company lnbors. The road, he said could
not live without its through business The
rates of the present day are much lower
than formerly. Tho local patrons Of the
road think the present rates satisfactory.
Gov. Smith said he had explained before
the legislature Of this state how it was that
more profit came to the road on butter
shipped from western points to Boston than
from Vermont points to Boston. The ex.
pense of handling local butter diminished
the profits 10 this extent
The most important and significant adj
mission made by Gov. Smith was that
drawn from him by Senator Edmunds on
|
Gov. Smith said the through traffic wa,
quite profitable, o much 70 that his road
could live without its local business Mr.
Strout, Of the counsel for the defence, wa,
quick to see the damaging nature Of thi,
admission and asked Gov Smith if he had
really meant to say that his road could liv,
without it's local business. Gov. Smith
seeing the point, answered that he hac
spoken hastily, and should have said that il
his company was driven out Of the through
business, and it would practically amount
to that if they were compelled to rails,
their rates-then in order to live the,
should have to raise their local rates.
The counsel for the Boston K Alhan,
company put in the deposition OF the agent
of several steamship lines which carry
freight up the coast, to Portland, Montreal
or Halifax, these going to show that thes,
lines did not carry western freight enough
to properly bring them into the list of com
pettors with the National Despatch fol-
through western business.
Mr.. Arthur Mills, general freight agen
of the Boston x Albany company, testife,
to certain facts, and said that the Boston &
Albany road had no wish to break dow
the business Of competitor. The roaC
was trying to conform to the requirement
of the fourth section Of the inter state law
and it entered this complaint in order to ge
"A construction put upon that section as mp
piled TO this situation. Should the Boston
& Albany company come down to the fig
ures of the Central Vermont on freight
consigned to Chicago, Detroit, and Other
leading western points, it would be violat
ing the fourth section, because the tariff
to these western points would be lower thai
the tariffs between Boston and points cas-
of them.
Some evidence was given by few Other
parties, but the bulk of the testimony is a
here outlined Gov. Smiths cross exami
nation by Senator Edmunds took place OF
Saturday morning, and the arguments o.
counsel followed, occupying about foul
hours in all.
1t should be noted, in speaking of the ties
timuny, that it was made to appear so plair
by the compliments that the National De
spatch line was used simply as device t,
get around the provisions Of the inter stat,
law that the respondents practically aban
doned their original line Of defence, ant
tacitly admitted that they had not estab
lished rates in accordance with the provi
sions of the inter state commerce act.
The Arguments.
Mr. Hoar, as the counsel for the Boston
& Albany company, made the opening an,
the closing argument, Col Haskins thel
spoke for the state of Vermont and tn
Vermont State Grange. A summary o
the leading points Of his argument is givel
else where Mr.. Fifield followed Mr.. Has
kins with an able argument Of an hour
length. He argued first TO show that
joint tariff does not make an Arrangement
for a continuous carriage or shipment,
within the meaning of the law, and, sec
ond, that however these things may be,
the circumstances and conditions unde
which traffic is taken from Boston 10 OK
densburg and St Albans are wholly dssim
liar from what they are in respect TO trail
taken beyond those points. He introduce,
into his argument a carefully prepared com
pilation Of statistics showing how the ma
terial prosperity Of the people Of Vernon
has increased since the introduction of rail
roads into the state
Mr. Edmunds in his argument for tn
State Grange and the people Of Vermont
spoke rapidly for half an hour. Replying I.
Mr. Fifeld's assertion that the farmers ha,
been conspicuous at the hearing only b,
their absence, he asserted that they ha,
something else 10 do but if they were no
there they We're not disinterested the,
form the largest portion of the community
and the inter state law was enacted largel,